Loan Options : Student Financial Services : Simmons College

Loan Options

Need-Based Loans

These federal loans are based on your Expected Family Contribution (EFC), which is a measure of your or your family's financial position. The EFC is used to determine your eligibility for federal student aid. To determine your EFC, complete the The Free Application for Federal Student Aid" (FAFSA). We've provided details on completing the FAFSA on our "How to Apply" page.

Federal Subsidized Stafford Student Loan

The Stafford Loan is a federally funded educational loan available through private lenders. The federal government pays the accruing interest rate while the student is enrolled on at least a half-time basis and for up to 6 months after the student graduates or ceases to be enrolled on at least a half-time basis.

The annual variable interest rate changes every July 1, but will never exceed 8.25%. Currently the rate is 6.80% for both the in-school rate as well as the repayment rate. Students who are awarded a Stafford Loan will receive a loan certified by the College and information regarding the completion of a Master Promissory Note (MPN) and Entrance Counseling. The maximum that a student may receive is $8,500 per academic year.

Please note:

Recipients are required to sign a Master Promissory Note (MPN) prior to the Stafford Loan being disbursed each semester. Failure to sign the promissory note will result in cancellation of the loan.
In addition, you will need to complete Stafford Loan Entrance Counseling before loan funds can be credited to your account.

Non-Need-Based Loans

Students who do not demonstrate sufficient need for a subsidized loan may receive the following loans.

Federal Unsubsidized Stafford Student Loan

This is a federally funded educational loan available through private lenders. The accruing interest may be paid on a quarterly basis of capitalized interest while the student is enrolled on at least a half-time basis. Graduate students may receive up to $20,500 in unsubsidized loans. The total unsubsidized and subsidized loans for each academic year cannot exceed $20,500.

Please note:

Recipients are required to sign a Master Promissory Note (MPN) prior to the Stafford Loan being disbursed each semester. Failure to sign the promissory note will result in cancellation of the loan.
In addition, you will need to complete Stafford Loan Entrance Counseling before loan funds can be credited to your account.

Graduate PLUS Loan

The Graduate PLUS Loan is a federally funded loan that enables graduate students to borrow up to the full cost of attendance less any other financial aid received. The interest rate on a PLUS loan is 7.90%. Repayment begins within 60 days after full disbursement of the loan, with disbursement made in equal installments, one half during each semester of a student's enrollment. The principal payment may be deferred while the student is enrolled on at least a half-time basis. Loans will not be certified for a partial period of enrollment (i.e., single semester) unless it is the student's final period of enrollment. Please note that there will be an origination fee of 4% on the Graduate PLUS Loan, so when requesting an amount to borrow, factor in this fee. The origination fee is charged by the federal government.

To apply for the Graduate PLUS Loan, you will go to the Direct Loan website and follow these three steps:

Complete the application
a) Sign into the Direct Loan website by using the borrower's PIN
b) Choose "Complete PLUS Request Process"
c) Select "Graduate PLUS"
d) Complete the requested information and submit the application
Complete the Master Promissory Note (MPN)
a) Sign into the Direct Loan website by using the borrower's PIN
b) Choose "Complete Master Promissory Note"
c) Select "Graduate PLUS"
d) Complete the requested information and submit the MPN (print a copy and keep for your records)
Complete Entrance Counseling
a) Sign into the Direct Loan website by using the borrower's PIN
b) Choose "Complete Entrance Counseling"
c) Select that you are a graduate student
d) Complete the requested information and submit the Entrance Counseling (the counseling will take approximately 30 minutes)

You will pay a fee of either 3 or 4 percent. This fee is applied proportionately each time a loan payment is made. This fee goes to the federal government to help reduce the cost of the loans.

If you were denied a Graduate PLUS Loan, you do have a couple options:

You can contest the credit decision on your Graduate PLUS Loan application by appealing directly to the Direct Loan program. More information is available by logging into the Direct Loan website.
You can choose to add an endorser to your Graduate PLUS Loan application in order to get credit approved. To add an endorser, you and your endorser can go to the Direct Loan website.

Alternative Loans

Alternative loans should be the loan of last resort for students and their families. The Simmons College Financial Aid staff strongly recommends that all students utilize all federal loan options before obtaining a private or alternative loan.

Almost all private lenders use a variable interest rate, and the rate is determined on the student's/parent's credit history. Interest rates can also vary widely from lender to lender for the same borrower. We recommend that students interested in a private loan compare rates carefully and know what their monthly repayment schedule will be.

We offer a list of questions you should be asking of a potential lender and a loan comparison calculator to help you in this process. There are many lenders available who offer alternative loans. We recommend reviewing a website put together by Electronic Loan Management (ELM) that offers a comprehensive list of lenders. Click on the "Lenders" tab on ELM for an alphabetic listing of lenders

NOTE: Simmons College does not recommend any particular lender or group of lenders to its students and families.

How to Sign Your Federal Loan Promissory Note

Once you've been awarded a loan, go to studentloans.gov and click the link to complete a new Master Promissory Note (MPN). Then, follow the instructions and prompts on each page until you are given the message "SUCCESS! Now Print Your MPN."

To sign the Master Promissory Note, you will need several pieces of information:

The borrower's PIN (a PIN can be obtained, or a duplicate requested, at www.pin.ed.gov)
The borrower's driver's license number
The names, completed addresses, and phone numbers for two references living at two separate addresses. One should be a family member.